BCGI Boston Communications Grp (MM)

Boston Communications Group, Inc. (NASDAQ:BCGI) today provided an update on its previously disclosed internal review relating to stock option grants and stock option practices and announced that it is likely that it will need to restate financial statements for certain prior fiscal periods to reflect the effects of additional non-cash charges for stock-based compensation expense. BCGI reported that, while its review is ongoing, the Company, together with the Audit Committee of the Board of Directors, has reached a preliminary conclusion that the appropriate measurement dates for financial accounting purposes of certain stock option grants differ from the recorded grant dates of those awards. As a result, the Company has determined that it is likely that it will need to restate historical financial statements to record additional non-cash charges for stock-based compensation expense related to past option grants. The Company has not yet determined the aggregate amount of additional non-cash charges for stock-based compensation expense, nor has it determined the resulting tax impact, if any, or which specific periods require restatement. The Company intends to file any SEC filings required to be restated and its Form 10-Q for the fiscal quarter ended June 30, 2006 as soon as practicable after the review is complete. About bcgi bcgi delivers innovative products and services that enable mobile operators and MVNOs worldwide to differentiate their offerings and increase market penetration while reducing costs. Founded in 1988, bcgi is a leader in identifying and addressing new market needs with proven solutions, including prepaid and postpaid billing, payments and access management. For more information, visit www.bcgi.net. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This release may contain forward-looking statements regarding future events that involve risks and uncertainties, including statements regarding expectations as to the completion and results of the Special Committee�s review, the timing of the filing of the Company�s Form 10-Q for the period ended June 30, 2006, and the timing and impact of any restatement of the Company�s financial statements for prior periods. Such statements are based on management�s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are potential delays in the Special Committee�s review of the Company�s stock option grants and stock option practices, the final results of the Special Committee�s review, the impact of such results or findings on the financial statements of the Company, the outcome of the SEC�s inquiry into the Company�s stock option grants and any other governmental investigations, risks and uncertainties associated with the Company�s announced review of its historical stock option grants and accounting, the Company�s inability to timely report with the Securities and Exchange Commission, the Company�s potential inability to meet NASDAQ requirements for continued listing, potential litigation arising out of the review or potential restatement, as well as the other factors that may affect future operating results detailed in BCGI�s Form 10-Q for the quarter ended March 31, 2006 filed with the Securities and Exchange Commission. Boston Communications Group, Inc. (NASDAQ:BCGI) today provided an update on its previously disclosed internal review relating to stock option grants and stock option practices and announced that it is likely that it will need to restate financial statements for certain prior fiscal periods to reflect the effects of additional non-cash charges for stock-based compensation expense. BCGI reported that, while its review is ongoing, the Company, together with the Audit Committee of the Board of Directors, has reached a preliminary conclusion that the appropriate measurement dates for financial accounting purposes of certain stock option grants differ from the recorded grant dates of those awards. As a result, the Company has determined that it is likely that it will need to restate historical financial statements to record additional non-cash charges for stock-based compensation expense related to past option grants. The Company has not yet determined the aggregate amount of additional non-cash charges for stock-based compensation expense, nor has it determined the resulting tax impact, if any, or which specific periods require restatement. The Company intends to file any SEC filings required to be restated and its Form 10-Q for the fiscal quarter ended June 30, 2006 as soon as practicable after the review is complete. About bcgi bcgi delivers innovative products and services that enable mobile operators and MVNOs worldwide to differentiate their offerings and increase market penetration while reducing costs. Founded in 1988, bcgi is a leader in identifying and addressing new market needs with proven solutions, including prepaid and postpaid billing, payments and access management. For more information, visit www.bcgi.net. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This release may contain forward-looking statements regarding future events that involve risks and uncertainties, including statements regarding expectations as to the completion and results of the Special Committee's review, the timing of the filing of the Company's Form 10-Q for the period ended June 30, 2006, and the timing and impact of any restatement of the Company's financial statements for prior periods. Such statements are based on management's current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ materially from those described in the forward-looking statements. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are potential delays in the Special Committee's review of the Company's stock option grants and stock option practices, the final results of the Special Committee's review, the impact of such results or findings on the financial statements of the Company, the outcome of the SEC's inquiry into the Company's stock option grants and any other governmental investigations, risks and uncertainties associated with the Company's announced review of its historical stock option grants and accounting, the Company's inability to timely report with the Securities and Exchange Commission, the Company's potential inability to meet NASDAQ requirements for continued listing, potential litigation arising out of the review or potential restatement, as well as the other factors that may affect future operating results detailed in BCGI's Form 10-Q for the quarter ended March 31, 2006 filed with the Securities and Exchange Commission.